Moody's ups, rates WireCo loan B2

Moody's Investors Service said it upgraded WireCo WorldGroup Inc.’s corporate family rating to B2 from B3 and probability of default rating to B2-PD from B3-PD. The agency also assigned a B2 rating to WireCo's first-lien term loan.

“WireCo's order books have rebounded, and the company is investing to improve its business mix by shoring up manufacturing capacity of higher margin products, like crane rope, where demand is strong. End market demand across WireCo's product offering is expected to remain strong across most of the company's end markets over the next 12 to 18 months, a turnaround from the trough inflicted by Covid shutdowns in first half 2020,” the agency said in a press release.

Moody's said it forecasts adjusted debt to EBITDA, inclusive of Moody's adjustments, of 5.5x and 4.8x at year end 2021 and 2022, respectively.

WireCo will use the loan proceeds to refinance first-lien senior secured and second-lien senior secured term loans, the ratings of which will be withdrawn at the close of this transaction.

The outlook is stable.

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